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Project Profile: Transportation Utility Fee, City of Coos Bay, Oregon

Planned Improvements on Spring and West Peachtree Street – Midtown, Atlanta

Fresh layer of pavement on a two-lane road in the City of Coos Bay, Oregon. Source: Credit: City of Coos Bay

Project Name Transportation Utility Fee, City of Coos Bay, Oregon
Location Coos Bay, OR
Project Sponsor / Borrower City of Coos Bay
Program Areas Value Capture
Value Capture Techniques Transportation Utility Fees
Mode Local Road (Citywide)
Description

In May 2019, the Coos Bay City Council began assessing a transportation utility fee (TUF) through utility bills with residences/apartments paying a $10 fee and businesses a $20 fee per month. The fees include City's sanitary sewer utility and/or Coos Bay-North Bend water board/water utility for improvement of street maintenance throughout the community. The poor condition of many of the city streets is a burden to residents, businesses, and visitors. Poor roads result in increased transportation costs for the goods and services the city depends on. The poor roads can increase vehicle maintenance costs.

The traditional funding source for city street maintenance, the state gas tax, were found to be inadequate to meet the repair and street maintenance needs. Without a fee in place it would take the city around 70 years to replace all of the city's failing roads. With these fees in place it cuts the time to replace that infrastructure in half. The City estimates the TUF will generate approximately $952,000 annually. These funds will be dedicated to undertaking additional repair and maintenance to streets throughout the city and intends to spend a portion of these funds for pothole maintenance in FY 2020 and save the remainder to carryover for capital street improvements in coming fiscal years

Traditionally road maintenance has been paid for by state gas taxes, but the increase in projects and costs has left the city unable to meet the needs with state gas taxes alone. Coos Bay earns about $300,000 annually from the state for road maintenance, with another $400,000 which they collect through a franchise fee with Pacific Power. Unfortunately, the increased availability of funds is not enough to adequately tackle the existing maintenance backlog of deferred street maintenance. The TUF funds will be used for ongoing repair and maintenance to streets citywide

Cost Residences/apartments pay a fee of $10/month, businesses pay $20/month.
Funding Sources The Transportation Utility Fee is paid as a surcharge on water and sewer bill by the utility customers within the city limits, both residential and commercial.
Project Delivery / Contract Method Design-Bid-Build
Private Partner N/A
Project Advisors / Consultants Coos Bay City Council
Lenders N/A
Duration / Status The City Council started collecting the Transportation Utility Fee in May 2019.
Financial Status/Financial Performance The Transportation Utility Fee will generate approximately $952,000 per year for the City of Coos Bay.
Innovations
  • Fee is collected as a surcharge on water and sewer bill from utility customers of residential and business units, and used for operation, maintenance, repair, engineering, improvement, renewal, safety, replacement, and/or reconstruction of the street system.
  • Stakeholder and community outreach
Related Links / Articles
Contacts

Carolyn Johnson
Community Development Administrator
(541) 269-8924
cjohnson@coosbay.org

Planned Improvements on Spring and West Peachtree Street – Midtown, Atlanta

Roadwork construction in progress on a street in the City of Coos Bay, Oregon. (Credit: City of Coos Bay)

Planned Improvements on Spring and West Peachtree Street – Midtown, Atlanta

Construction crew in the process of repairing a road in the City of Coos Bay, Oregon. (Credit: City of Coos Bay)

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